Contractor defrauded Sandy victims by skipping out on work, state alleges

NEWARK -- State officials have filed a complaint against a construction firm they said accepted nearly $350,000 to repair and elevate homes damaged by Hurricane Sandy but failed to do the work.

The complaint against Coastal Restorations & Construction of New Jersey claims the company and its principals alleges they left some of their clients without completed work, failed to issue refunds for others and made false claims about the scope of their responsibilities, according to the state Division of Consumer Affairs.

The complaint, which covers activities involving seven homeowners, also charges the Manahawkin-based company, along with principals Adam Nevius, Cole Nevius Jr. and Kimberly Atkinson with violating state laws regulating contractors and protecting consumers.

"If a contractor accepts a renovation or elevation job, that company must follow the laws and regulations governing home improvement," said Steve Lee, director of the Division of Consumer Affairs. "If the company cannot, it should not be conducting business in New Jersey."

The complaint charges the company and its principals with accepting money - including federal restoration funding - from consumers to repair or raise Sandy-damaged homes but then failing to start the work.

It also alleged they failed to give notice about delays in service, failed to respond to phone calls, emails and texts inquiring about the status of repairs and that they abandoned unfinished projects without returning for weeks, months or at all.

In one case, they filled a Dumpster at a job site with material from other projects and then failed to pay the Dumpster owner, leaving the homeowner to pay for its removal, Lee said in a press release.

In another case, the company issued a bad refund check to a homeowner for overpayment and then ultimately failed to refund any money to the owner, he said.

The complaint, filed in Superior Court in Ocean County, also accused Adam Nevius of representing that building and construction permit applications had been filed, when they had not.

They are accused of violating the state's Consumer Fraud Act, the Contractors' Registration Act, the Regulations Governing Contractor Registration, the Regulations Governing Home Improvement Practices and the Regulations Governing General Advertising, Lee said.

He said the company's website falsely claimed that the Coastal Renovations would handle all permitting procedures and it failed to prominently include its home improvement contractor registration number on advertisements on the website and in consumer correspondence.

The company also failed to include on its invoices, contracts and correspondence the toll-free telephone number for consumers to call with inquiries or complaints concerning contractors

"Those still recovering from Superstorm Sandy must have confidence that contractors will treat them fairly and honestly," said state Attorney General Christopher Porrino, whose office oversees the Division of Consumer Affairs. "We will continue to aggressively pursue those who destroy that confidence and undermine the ability of families to go home again."

The complaint is the eighth action filed by the state against home improvement contractors alleging Sandy-related fraud in connection with federal restoration grant money.

The homeowners identified in the complaint received money from the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program.

The complaint seeks restitution to the homeowners and the contractor to return the federal funds., The state is also looking for company and its principals would also be responsible for paying civil penalties, attorney fees and investigative costs.

The state is seeking to permanently revoke the contractor's state registrations and forbid Coastal Restorations, Adam Nevius, Cole Nevius and Atkinson from operating a construction business in New Jersey, Lee said.

Investigators Joseph Iasso and Maureen Browne of the Division's Office of Consumer Protection conducted the investigation.

Consumers who believe they have been cheated or scammed by a business, or suspect any other form of consumer abuse, can file an online complaint with the state Division of Consumer Affairs by visiting its website or by calling 1-800-242-5846 (toll free within New Jersey) or 973-504-6200.

MaryAnn Spoto may be reached at [email protected]. Follow her on Twitter @MaryAnnSpoto. Find NJ.com on Facebook.

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